Montana Putting It All Together - Anti-Assignment and Anti-Delegation Clauses

State:
Multi-State
Control #:
US-ND0314
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Word; 
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Description

This form brings together several boilerplate contract clauses that work together to outline requirements or otherwise restrict any assignment of rights or delegation of performance under a contract.

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FAQ

(1) A party may perform his duty through a delegate unless otherwise agreed or unless the other party has a substantial interest in having his original promisor perform or control the acts required by the contract.

A Standard Clause, also known as an anti-assignment and anti-delegation clause, that provides for a contractual limitation on the assignability of contractual rights and the delegation of contractual duties.

Most commercial contracts end with a clause, ?Neither this Agreement nor any of the rights, interests or obligations under the Agreement shall be assigned, in whole or in part, by operation of law or otherwise by either party without the prior written consent of the other party.? This is the anti-assignment clause that ...

This may read something like this: ?Neither party may assign or delegate this agreement or its rights or obligations under this agreement without the prior written consent of the other party, whose consent shall not be unreasonably withheld or delayed.

Under contract law, transfers of ?rights?, such as a plaintiff's ?right? to receive future periodic payments, are ?assigned?, whereas ?duties?, such as a defendant's obligation (duty) to make future periodic payments, are ?delegated.?

The Pledgee shall have full power to delegate (either generally or specifically) the powers, authorities and discretions conferred on it by this Agreement on such terms and conditions as it shall see fit. The Pledgee shall only remain liable for diligently selecting and providing initial instructions to such delegate.

No Party party hereto shall assign this Agreement or any part hereof without the prior written consent of the other Parties. parties. Subject to the foregoing, this Agreement shall be binding upon and inure to the benefit of the Parties parties hereto and their respective permitted successors and assigns.

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Montana Putting It All Together - Anti-Assignment and Anti-Delegation Clauses